Ubisoft Stock Plummets 15% After 'Assassin's Creed Shadows Trailer Debut And Company Failed To Meet Forecasted Sales Figures
Ubisoft stock plummeted over 15% after the company released its first trailer for Assassin's Creed Shadows and reported it missed forecasted sales figures.
This is what is hilarious to me. Going full digital made it so game companies can’t guarantee a revenue stream from physical stores. Big companies have pretty much dug their own grave through removal of a reliable revenue stream. It does allow the companies to fudge the numbers (especially through streaming services) but it’ll only last as long as the investors don’t ask questions.
Only for investors that are giving them money directly like Blackrock with their ESG loans. Investors can pump up the stock price as much as they want. Ubi doesn't get any of that money. Without money coming in from sales, a high stock price just means a harder crash for those ignorant investors.
And like Disney stockholders, they will deserve every bit of it.
Physical copies are essentially guaranteed revenue, since most retailers would rather mark down a shitty game than go through the hassle of returning them to the distributor.
That said, there's always the risk that big fish like Walmart will ram a spiky dildo up a publisher's ass if it's shitty enough.